UK Economic and Real Estate Briefing – October 2024

Despite structural challenges, 2024 has been a relatively positive year for the UK economy so far, while the commercial real estate outlook continues to benefit from falling interest rates. 

The focus now shifts to how the government can further support economic growth and investment at the Autumn Budget.

• After a strong H1 2024 for the economy, real GDP growth stalled in both July and August, while measures of consumer confidence dipped in September despite continuing real-terms wage growth.
• Interest rates remain a key focus, but all eyes now turn to the Autumn Budget. Despite the constrained fiscal backdrop, the Chancellor will be determined to find ways to boost economic growth. 
• UK commercial real estate performance continues to improve. Measures of core offices capital value growth are back in positive territory and many investors expect yield compression in the coming months. 
• Deal flow in Central London is improving , with c. £1.5bn of offices currently under offer. However, with debt costs remaining high and a potentially-momentous Autumn Budget looming, the recovery is likely to remain gradual. 

Download the full report below or contact Charlie Tattersall and Samuel Duah for more information.